City Council Finance Committee Meeting

FINANCE COMMITTEE MINUTES August 20, 2020 The City Council Finance Committee of the City of Norman, Cleveland County, State of Oklahoma, met virtually at 4:00 pm in the Municipal Building Executive Conference Room on the 20th day of August, 2020, and notice and agenda of the meeting were posted in the Municipal Building at 201 West Gray 24 hours prior to the beginning of the meeting. PRESENT: Mayor Clark, Members Holman and Foreman ABSENT: Member Bierman OTHERS PRESENT: City Council Member Hall Darrel Pyle, City Manager Anthony Francisco, Director of Finance Kathryn Walker, City Attorney Shawn O’Leary, Director of Public Works Kim Coffman, Budget Manager Jacob Huckabaa, Budget Technician Ken Komiske, Director of Utilities Brenda Hall, City Clerk Gala Hicks, Director of Human Resources Kevin Foster, Chief of Police Tim Powers, Director of Information Technology Tony Mensah, Street Superintendent Scott Sturtz, City Engineer Nathan Madenwald, Utilities Engineer Chris Mattingly, Capital Projects Engineer Item 1, being: DISCUSSION REGARDING A POSSIBLE SIDEWALK RECOUPMENT ORDINANCE Kathryn Walker gave the presentation. There are two choices, the assessment district and the recoupment option. The assessment option would see that the City is reimbursed after a project is complete. The recoupment ordinance would see the City front costs and, depending on when the plot is developed, be reimbursed partially after the projects were complete according to time frame. Both the Mayor and Council Member Hall would like to look into this due to the lack of sidewalks in certain areas of the City and the lack of maintenance on other sidewalks. ****** Finance Committee Minutes August 20, 2020 Page 2 Item 2, being: PRESENTATION OF THE STATUS OF THE WATER FUND. Ken Komiske gave the presentation on the status of the Water Fund. He stated that this presentation is being presented to the Utilities Trust. We need to have revenue stability for the Water Fund and also focus on development, sustainability, and cost. We would like to replace all 40,000 water meters with upgraded versions that would allow for streamlined service. Francisco asked if the plan to replace all the meters would happen all at once or over the span of 2-3 years. Komiske stated that the current plan was to spread the replacement out. Komiske stated that the Oklahoma Department of Environmental Quality would also like us to begin disinfecting our water supply in the well, along with the disinfecting we do when the water is distributed. We would also like to construct a horizontal water well. The annual Capital costs for these projects would be about $3.4 million, in addition to yearly operation costs of 3.5%. This would all come out to be about $4.4 million additionally per year. For our proposal, if you use 4,000 or less gallons of water of less per month residentially, your bill would go up $6.60 per month. For commercial rates, we have a summer and winter rate instead of a tiered rate. We should also consider charging for fire services. He stated that we definitely need a water rate increase, and these proposed numbers will cover our needs. Council Member Holman stated that he would be ok putting the water rate increase on the ballot in February with the Council elections. ****** Item 3, being: PRESENTATION REGARDING THE STREET MAINTENANCE BOND PROGRAM. Shawn O’Leary gave the presentation. He stated that the bond program was designed to focus on neighborhood streets. The money will end this year for this last 5 year bond program. If we do not vote to put this on the ballot by July, then we lose the ability to claim that it is a no new tax bond proposal. Mayor Clark asked if it would be possible to take a portion of the new bond money and use it to expand sidewalks and bike paths, which are needed greatly in this time of Covid19. Francisco stated that you can add sidewalks and bike paths to a street project, but they cannot be a separate project and still qualify as a utility bond (simple majority vote). O’Leary stated that per the ballot ordinance on a bond program such as this, there will be a list of the exact streets that will be worked on if it is passed. This bond program is really working and we have been able to deliver everything we have said we would deliver with this additional money. Finance Committee Minutes August 20, 2020 Page 3 Mayor Clark would like to add both of these proposals to the September Study Session for discussion. ****** Item 4, being: SUBMISSION OF THE REVENUE/EXPENDITURE REPORTS Francisco stated that the last month or two had surprising revenue collections, which were up significantly and we do not know what the reason for this is. Items submitted for the record: 1. Summary of Major Fund Revenue Sources vs. Budget FYE 2021 as of July 31, 2020 2. Summary of Major Fund Expenditures vs. Budget FYE 2021 as of July 31, 2020 3. Appropriations from Fund Balance FYE 21 4. General Fund Transfers over $50,000 between Expenditure Categories FYE 21 July 2020 5. Norman Forward Sales Tax Financial Reports 6. Inter-City Sales Tax Growth Comparison ****** Item 5, being: SUBMISSION OF THE REPORT ON OPEN POSITIONS No discussion at this time. Items submitted for the record: 1. City of Norman Position Vacancy Report dated 8/12/20 ****** Finance Committee Minutes August 20, 2020 Page 4 Item 6, being: MISCELLANEOUS COMMENTS No discussion at this time. ******